Why Contact Your Lender/Servicer?
Your loan servicer is the company that handles collection of payments and the day-to-day tasks involved with other mortgage-related processes like collection and payment of homeowner's insurance and property tax payments. Many servicers understand that individuals and families can face temporary job loss, serious illness, or other major life events that can impact their ability to pay their mortgage. It is important that you contact your mortgage servicer to explain your situation if you anticipate any difficulty in making your mortgage payment. Many servicers are willing to work with you if you contact them immediately. Be sure to have information prepared for the conversation so that the company is best able to assist you when you call.

To determine who your mortgage servicer is:

• Check your monthly mortgage billing statement
• Check your payment coupon book

• Your loan account number
• What caused you to miss your mortgage payment(s)?
• Do you have any documents to back up your explanation for falling behind?
• How have you tried to resolve the problem?
• Is your problem temporary, long-term or permanent?

What to do when working with your servicer:

• Keep notes of all your communications with the loan servicer including:

- Date and time of contact
- Nature of the contact (face-to-face, phone, e-mail, fax, or mail)
- First and last name of the representative
- The outcome

• If you make any oral request to your loan servicer, follow up with a letter reiterating the oral request.
• Send your letter by certified mail, return receipt requested, so you can document that the loan servicer received your correspondence.
• Keep copies of your letter and any enclosures.
  HUD Certified Housing Counseling Agencies
  The following agencies are available to provide foreclosure prevention and/or pre-purchase counseling assistance:

Tips for Avoiding Foreclosure

Are you having trouble keeping up with your mortgage payments? Have you received a notice from your lender asking you to contact them?

• Don't ignore the letters from your lender
• Contact your lender immediately
• Contact a HUD-approved Housing Counseling Agency

If you are unable to make your mortgage payment:

1. Don't ignore the problem.

The further behind you become, the harder it will be to reinstate your loan and the more likely that you will lose your house.

2. Contact your lender as soon as you realize that you have a problem.

Lenders do not want your house. They have options to help borrowers through difficult financial times.

3. Open and respond to all mail from your lender.

The first notices you receive will offer good information about foreclosure prevention options that can help you weather financial problems. Later mail may include important notice of pending legal action. Your failure to open the mail will not be an excuse in foreclosure court.

4. Know your mortgage rights.

Find your loan documents and read them so you know what your lender may do if you can't make your payments. Learn about the foreclosure laws and timeframes in your state (as every state is different) by contacting the State Government Housing Office.

5. Understand foreclosure prevention options.

Valuable information about foreclosure prevention (also called loss mitigation) options can be found on the internet at portal.hud.gov/portal.

6. Contact a HUD-approved housing counselor.

The U.S. Department of Housing and Urban Development (HUD) funds free or very low cost housing counseling nationwide. Housing counselors can help you understand the law and your options, organize your finances and represent you in negotiations with your lender if you need this assistance. Find a HUD-approved housing counselor near you or call (800) 569-4287 or TTY (800) 877-8339.

7. Prioritize your spending.

After healthcare, keeping your house should be your first priority. Review your finances and see where you can cut spending in order to make your mortgage payment. Look for optional expenses-cable TV, memberships, (entertainment that you can eliminate). Delay payments on credit cards and other "unsecured" debt until you have paid your mortgage.

8. Use your assets.

Do you have assets-a second car, jewelry, a whole life insurance policy-that you can sell for cash to help reinstate your loan? Can anyone in your household get an extra job to bring in additional income? Even if these efforts don't significantly increase your available cash or your income, they demonstrate to your lender that you are willing to make sacrifices to keep your home.

9. Avoid foreclosure prevention companies.

You don't need to pay fees for foreclosure prevention help, use that money to pay the mortgage instead. Many for-profit companies will contact you promising to negotiate with your lender. While these may be legitimate businesses, they will charge you a hefty fee (often two or three month's mortgage payment) for information and services your lender or a HUD approved housing counselor will provide free if you contact them.

10. Don't lose your house to foreclosure recovery scams!

If any firm claims they can stop your foreclosure immediately if you sign a document appointing them to act on your behalf, you may well be signing over the title to your property and becoming a renter in your own home! Never sign a legal document without reading and understanding all the terms and getting professional advice from an attorney, a trusted real estate professional, or a HUD approved housing counselor.

Resources for finding a real estate agent and selling your home
If you need to sell your home, you'll have to answer many questions. You'll need to find how much your house is actually worth, and you'll have to find a real estate agent you are comfortable with. The following resources may help:

• National Association of Realtors
• National Association of Real Estate Brokers
• International Real Estate Digest
• National Association of Hispanic Real Estate Professionals
• www.move.com 

Where can I go to find help?
In addition to contacting your mortgage servicer, you can call the HOPE NOW Homeowner's Hotline at 888-995-HOPE (4673) or visit www.hopenow.com where they have independent nonprofits that provide HUD-approved counselors. You can call a housing counselor approved by the U.S. Department of Housing and Urban Development (HUD) or a local resource in your area. These counselors are experienced in communicating with mortgage servicers and are able to determine where you are in the process and what "work out" options are available to you.

What should I do if I receive letters saying my home is going to be foreclosed upon?
Do not ignore letters or phone calls from your mortgage servicer! If you are having difficulty in making your payments, take action immediately by calling or writing to your mortgage servicer's Loss Mitigation Department to explain your situation. Use the phone numbers found here, and be honest with the mortgage servicer about your situation so it can help you choose the best option. Click here to learn what information you will need for the conversation so that the mortgage servicer is best able to assist you when you call.

Where can I file a complaint if I believe I have been a victim of predatory lending?
Complaints regarding predatory lending can be filed with the Arizona Attorney General's office by calling 602 542-5763, or go to their Web site at www.azag.gov/consumer/.
 

This Page was last updated on 09/15/08
© City of Peoria, Arizona.  All Rights Reserved.